Financial Performance - The Group reported a profit of approximately HK$7 million for the six months ended 30th September 2023, down 22% from HK$9 million in the same period last year[2]. - Revenue for the period was approximately HK$460 million, representing a 15% decrease compared to the same period last year[2]. - Operating profit decreased to HK$11,919,000, down 33.9% from HK$18,009,000 in the previous year[120]. - Profit for the period was HK$6,647,000, a decline of 25.5% compared to HK$8,918,000 in the prior year[120]. - Basic earnings per share for the period was 1.36 HK cents, down from 1.73 HK cents in the same period last year[120]. - Total comprehensive loss for the period amounted to HK$19,863,000, compared to a loss of HK$42,754,000 in the previous year[123]. - The company reported a decrease in currency translation differences, which amounted to a loss of HK$26,347,000, down from HK$51,409,000 in the previous year[123]. - The Group's cash and bank balances and short-term bank deposits amounted to approximately HK$238 million as of September 30, 2023[39]. - Interest expense decreased to approximately HK$2 million from HK$3 million in the same period of 2022[40]. - Working capital surplus increased to approximately HK$244 million as of September 30, 2023, compared to HK$232 million in the previous year[41]. Operational Highlights - The Group's operations in China performed better than expected, with the Guangzhou plant remaining profitable, the Shaoguan plant turning losses into profits, and the Suzhou plant recording a slight decline but still achieving profitability[4]. - The Eastern China operation experienced a slight decrease in performance due to economic slowdown and increased competition, while the Southeast Asia operation recorded profits despite a decline in sales[15]. - The Group anticipates weak market demand for products and services in the second half of the year, posing significant challenges to operations[10]. - The Group is enhancing operational efficiency through the development of an artificial intelligence operation network and integrating the value chain, achieving interim results despite challenging conditions[14]. - The Group is committed to green and low-carbon development, actively promoting sustainable practices within its operations[19]. - The Shaoguan plant acquired a new Heidelberg eight-colour UV printing machine and established a new food-safe packaging workshop, enhancing service quality and diversifying business development[24]. - A fully automatic intelligent production line for children's books was established at the Shaoguan plant, significantly reducing labor costs and increasing production efficiency[25]. - The Group is increasing investment in the pharmaceutical business and enhancing lean operation standards to reduce production and management costs[33]. Market and Industry Context - The International Monetary Fund (IMF) projected global growth rate to decline from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024[34]. - Headline inflation is expected to fall from 9.2% in 2022 to 5.9% in 2023 and 4.8% in 2024[34]. - The Group's Southern China operations maintained profitability despite a decline in global book market demand, attributed to high inflation and interest rates in Europe and the US[22]. Shareholder Information - As of September 30, 2023, Mr. Lam Kwong Yu holds 202,962,677 shares, representing 40.06% of the total shareholding[55]. - Ms. Yeung Chui has beneficial ownership of 79,916,000 shares and an additional 1,012,901 shares through Dayspring Enterprises Limited, totaling 80,928,901 shares or 15.97%[55][57]. - Mr. Poon Kwok Ching holds 118,000 shares, accounting for 0.02% of the total shareholding[55]. - The Company has adopted a new share option scheme since August 18, 2022, allowing for the issuance of up to 51,463,528 shares, which is approximately 10% of the issued share capital[60][68]. - The maximum number of shares that can be issued upon exercise of options under the 2022 Share Option Scheme must not exceed 30% of the shares in issue at any time[69]. - No share options were granted under the 2022 Share Option Scheme during the six months ended September 30, 2023[79]. Financial Position - Total assets decreased from HK$953,492,000 as of March 31, 2023, to HK$913,594,000 as of September 30, 2023, representing a decline of approximately 4.2%[127]. - Total equity attributable to owners of the Company decreased from HK$643,374,000 as of March 31, 2023, to HK$623,738,000 as of September 30, 2023, a decrease of about 3.1%[129]. - Current liabilities decreased from HK$298,852,000 as of March 31, 2023, to HK$280,332,000 as of September 30, 2023, a reduction of about 6.2%[129]. - Trade receivables increased from HK$172,865,000 as of March 31, 2023, to HK$205,742,000 as of September 30, 2023, an increase of approximately 19.0%[127]. - Cash and cash equivalents slightly decreased from HK$243,019,000 as of March 31, 2023, to HK$237,992,000 as of September 30, 2023, a decrease of about 2.1%[127]. - The Company’s reserves decreased from HK$592,710,000 as of March 31, 2023, to HK$573,074,000 as of September 30, 2023, a decline of approximately 3.3%[129]. Employee and Training - Approximately 2,500 employees are currently employed, with ongoing training and development programs in place[49]. - Employee costs decreased to HK$147,552,000 from HK$160,542,000, a reduction of 8.1%[171]. Capital Expenditure - Capital expenditure for the period was HK$15,070,000, compared to HK$25,076,000 in the previous year, indicating a decrease of 40%[165]. - Additions to property, plant, and equipment amounted to HK$13,785,000, down from HK$30,814,000 in the previous year, a decrease of 55.2%[165]. Risk Management - The Group's financial risk management includes market risk, credit risk, liquidity risk, and price risk[148]. - There have been no significant changes in the risk management policies since the year-end[148]. - The carrying amounts of the Group's financial assets approximate their fair values due to short-term maturities[148].
星光集团(00403) - 2024 - 中期财报